Best Electric Companies in Texas

In Texas, energy was deregulated in 2002, giving homeowners, renters and business owners more options when deciding who will provide electricity to their home or place of business. Texas electricity companies allow Texans to choose a provider who will give them the best price and service options for their needs.

One of North America's largest providers of electricity, natural gas and other home services for residents and businesses throughout the U.S. and parts of Canada. In Texas, their 4 plans start at 11.7 cents per kWh for 36 months.

Offers electricity to residents and businesses throughout several Texas cities, including Dallas, Houston, Corpus Crist, Fort Worth and Arlington. Their 5 plans begin at 12.8 cents per kWh for 60 months.

Offers electricity and other services to residents and businesses throughout Texas, including Houston, Corpus Cristi and Dallas. Choose from 9 plans starting at 11.5 per kWh on a month-to-month contract-free basis.

Offers electricity and other services to residents and businesses within the City of Austin, Travis County, and part of Williamson County. Their 5-tiered rate structure begins at 2.8 cents per kWh. Additional charges by season.

Offers electricity to residents and businesses throughout Texas' deregulated service areas. Their Prepay and Weekly/Bi-weekly customers are served by Now Power, which offers 3 cents per kWh with a $30 account balance maintained.

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How to choose an electric company in Texas

1. Consider the electric company's history

Many Texas electricity companies have been around for decades, and each has a reputation that precedes it. Customers may want to take into account a company’s history and how they have handled providing electricity in the past.

Legacy providers: The oldest Texas electricity companies, called legacy companies, have been around the longest, and they have provided electricity in the state since long before energy was deregulated.

New electricity companies: Many Texas electric companies came about after energy was deregulated, and most offer the same quality of service as the older providers in the state.

2. Factor in any rewards programs

Because there are many electricity companies in Texas, companies may attempt to win customers over by offering extra rewards. These can include many types of promotions for signing up or rewards for using the service.

Rewards programs: In Texas, some electricity companies offer customers cash and gift rewards in exchange for using their service.

Sign-up promotions: Some Texas electric companies offer incentives for signing up for service, including gift cards, donations to charity or a promise of a lower bill.

Additional services: Another extra incentive offered by many Texas electricity companies is the added bonus of extra helpful services, like a moving service that will help take care of ending electricity service when leaving and finding a new electricity provider in a new location.

3. Compare the electricity plans offered

One of the most important features of an electric company is the type of electricity plan offered to consumers. This is often the most important deciding factor for customers choosing a provider.

Fixed rate plans: Some electric companies charge consumers a flat rate for electricity throughout the entirety of their electricity plan.

Variable rate plans: Variable rate plans charge consumers a different rate from month to month, and these plans often lack contracts and allow consumers to take advantage of changes in the market.

4. Decide how eco-friendly you want to be

There’s no doubt that electricity uses up some of the Earth’s natural resources. However, some energy companies in Texas are more eco-friendly than others, using different sources of power and dispersing different amounts of emissions into the environment.

Green companies: Electricity providers focused on eco-friendly power often generate electricity from sources other than natural gas, such as solar power, hydroelectric power (water) and wind.

Traditional electric companies: Traditional electric companies in Texas generate electricity from more traditional sources that are not renewable, such as coal or natural gas.

5. Review the contract terms

Many electricity companies in Texas require consumers to sign a contract. The terms of this contract spell out how long a customer must stay with the company and how much they will pay, among other specifications.

Non-contract companies: Some of Texas’ electricity providers do not make consumers sign a contract, and they provide power on a month-to-month basis.

Minimum terms: Texas electricity companies with minimum terms require residents to commit to a certain amount of time buying energy from them, and these companies often charge a cancellation fee if service is ended before the contract expires.

Types of Texas electricity companies

Legacy electricity companies

Legacy electricity companies in Texas have been around the longest. These electric companies often rely on the more traditional non-renewable sources of power to generate electricity, and they often have the reputation for being some of the most dependable companies in terms of providing power for residents.

Green electricity companies

Green electricity companies in Texas are more focused on eco-friendliness. They often provide electricity generated by more renewable sources of power, such as solar power, water and wind.

Texas electricity company reviews

Champion Energy Services is a fast-growing electricity company that serves deregulated markets in the U.S. The company is Houston-based, but also serves consumers in Texas, Illinois, Pennsylvania, Ohio, New Jersey, Maryland and New York.

Direct Energy is one of the state’s largest electricity providers. Founded in Toronto in 1986, Direct is an international company that also provides consumers - both residential and commercial - with other utilities, including natural gas.

TriEagle Energy provides energy in the deregulated states of Texas, Pennsylvania and New Jersey. They purchase power from natural gas, coal, nuclear and renewable sources like wind. Residents and businesses can opt to get power from 100 percent renewable sources when they sign up for a plan with TriEagle.

Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.

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